Hani Charani, CFO of Specialized Medical Co. (SMC)
Hani Charani, CFO of Specialized Medical Co. (SMC), said the company is on track to achieve revenue of between SAR 1.6 billion and SAR 1.7 billion in 2026. He expects the contribution of newly added operating capacity to revenue to continue growing in Q4 2026, which typically sees a seasonal increase in patient numbers. 
In an interview with Argaam, Charani added that the company expects SMC Clinics in the Malqa district and its food and catering subsidiary ISFC to turn profitable in 2027. He also expects the profitability margins of the new outpatient clinics at SMC 1 and SMC 2 hospitals to continue improving gradually, supported by higher utilization rates.
Malqa Clinics is still in the early stages of operation, with 17 clinics currently operating out of a total capacity of 35. The company has signed agreements with all insurance companies except one and expects the center’s revenue to continue growing over the next two quarters, according to the official.
Charani also said the new outpatient clinics added at SMC 1 and SMC 2 hospitals in 2025 continue to gradually increase their utilization rates. Outpatient clinic utilization improved compared with the same quarter last year, and he expects this improvement to continue in the coming months, supporting profitability margins.
Commenting on the company’s Q3 2026 financial results, Charani said revenue growth of 4.8% to SAR 401.1 million was driven by higher patient numbers, alongside the expansion of the company’s clinic network to 355 clinics, compared with 307 clinics in the same period last year. However, net profit declined 37% to SAR 41.9 million due to higher operating costs and provisions, as well as lower other income.
He explained that higher direct costs were associated with the gradual ramp-up of Malqa Clinics and the new outpatient capacity at SMC 1 and SMC 2 hospitals, in addition to the expansion of the food and catering subsidiary ISFC.
The increase in expected credit loss provisions and lower other income also affected profit. The comparable period in 2025 included income from a bank deposit that was liquidated in early 2026, while lower financing costs helped mitigate the impact of these factors, according to the CFO.
Charani also confirmed that the core hospital business continues to perform well, with hospital net profit increasing by between 4% and 5% in the first nine months of the year, excluding the impact of Malqa Clinics and ISFC.
Regarding expected credit loss provisions, the CFO explained that the increase reflects business growth and higher outstanding balances from insurance companies and cash-paying patients, in addition to taking current economic conditions into account and adopting a conservative risk management policy.
He noted that the company reviews its provisions quarterly in accordance with International Financial Reporting Standard 9 (IFRS 9), stressing that these provisions are a precautionary accounting measure and do not indicate any material issue with the quality of receivables.
Patient Growth and Business Expansion
Regarding demand for medical services, Charani explained that it remained strong in Q3 2026 despite the usual seasonal slowdown during the summer. Outpatient visits increased 6.5% to 376,100, while inpatient bed nights rose 6.5% to 42,500, compared with the same period last year.
He added that growth covered all medical specialties, with activity improving at SMC 1 and SMC 2 hospitals, supported by the gradual ramp-up of clinics opened in 2025 and 2026 and strong demand for acute care services.
Regarding subsidiary ISFC, Charani said SMC is pursuing an expansion strategy beyond providing food and catering services to the group’s hospitals and its Diet World brand, with the aim of increasing revenue from external customers.
He noted that the subsidiary’s revenue grew by more than 60% in the first nine months of 2026. It also recently signed contracts with several new customers, and he expects its expansion to support its performance and enable it to achieve profitability in 2027.
Hani Charani, CFO of Specialized Medical Co. (SMC)
Hani Charani, CFO of Specialized Medical Co. (SMC), said the company is on track to achieve revenue of between SAR 1.6 billion and SAR 1.7 billion in 2026. He expects the contribution of newly added operating capacity to revenue to continue growing in Q4 2026, which typically sees a seasonal increase in patient numbers.
In an interview with Argaam, Charani added that the company expects SMC Clinics in the Malqa district and its food and catering subsidiary ISFC to turn profitable in 2027. He also expects the profitability margins of the new outpatient clinics at SMC 1 and SMC 2 hospitals to continue improving gradually, supported by higher utilization rates.
Malqa Clinics is still in the early stages of operation, with 17 clinics currently operating out of a total capacity of 35. The company has signed agreements with all insurance companies except one and expects the center’s revenue to continue growing over the next two quarters, according to the official.
Charani also said the new outpatient clinics added at SMC 1 and SMC 2 hospitals in 2025 continue to gradually increase their utilization rates. Outpatient clinic utilization improved compared with the same quarter last year, and he expects this improvement to continue in the coming months, supporting profitability margins.
Commenting on the company’s Q3 2026 financial results, Charani said revenue growth of 4.8% to SAR 401.1 million was driven by higher patient numbers, alongside the expansion of the company’s clinic network to 355 clinics, compared with 307 clinics in the same period last year. However, net profit declined 37% to SAR 41.9 million due to higher operating costs and provisions, as well as lower other income.
He explained that higher direct costs were associated with the gradual ramp-up of Malqa Clinics and the new outpatient capacity at SMC 1 and SMC 2 hospitals, in addition to the expansion of the food and catering subsidiary ISFC.
The increase in expected credit loss provisions and lower other income also affected profit. The comparable period in 2025 included income from a bank deposit that was liquidated in early 2026, while lower financing costs helped mitigate the impact of these factors, according to the CFO.
Charani also confirmed that the core hospital business continues to perform well, with hospital net profit increasing by between 4% and 5% in the first nine months of the year, excluding the impact of Malqa Clinics and ISFC.
Regarding expected credit loss provisions, the CFO explained that the increase reflects business growth and higher outstanding balances from insurance companies and cash-paying patients, in addition to taking current economic conditions into account and adopting a conservative risk management policy.
He noted that the company reviews its provisions quarterly in accordance with International Financial Reporting Standard 9 (IFRS 9), stressing that these provisions are a precautionary accounting measure and do not indicate any material issue with the quality of receivables.
Patient Growth and Business Expansion
Regarding demand for medical services, Charani explained that it remained strong in Q3 2026 despite the usual seasonal slowdown during the summer. Outpatient visits increased 6.5% to 376,100, while inpatient bed nights rose 6.5% to 42,500, compared with the same period last year.
He added that growth covered all medical specialties, with activity improving at SMC 1 and SMC 2 hospitals, supported by the gradual ramp-up of clinics opened in 2025 and 2026 and strong demand for acute care services.
Regarding subsidiary ISFC, Charani said SMC is pursuing an expansion strategy beyond providing food and catering services to the group’s hospitals and its Diet World brand, with the aim of increasing revenue from external customers.
He noted that the subsidiary’s revenue grew by more than 60% in the first nine months of 2026. It also recently signed contracts with several new customers, and he expects its expansion to support its performance and enable it to achieve profitability in 2027.
